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Apr 22, 2003
FLIR Systems Announces First Quarter 2003 Financial Results; Reiterates Full-Year Outlook
FLIR Systems Announces First Quarter 2003 Financial Results; Reiterates Full-Year Outlook

PORTLAND, Ore., Apr 22, 2003 (BUSINESS WIRE) -- FLIR Systems, Inc. (Nasdaq:FLIR) announced today that revenue for the first quarter ended March 31, 2003 increased 19% to $69.2 million from $58.1 million for the first quarter of 2002. Income before taxes increased 34% to $13.7 million from $10.2 million. Net earnings for this year's first quarter increased 6% to $9.2 million, or $0.51 per diluted share, reflecting a 33% tax rate. This compares to net earnings for the first quarter of 2002 of $8.7 million, or $0.49 per diluted share, reflecting a 15% tax rate.

Thermography product revenue increased 21% over the first quarter last year, primarily because of higher sales of the company's new E-Series handheld cameras. Imaging product revenue increased 18%, reflecting sales gains for both the Company's ground-based and airborne Imaging systems.

The backlog of orders grew to approximately $113 million at March 31, 2003, as compared to $92 million at December 31, 2002.

"Our first quarter 2003 financial performance puts FLIR in an excellent position to accomplish our goals for 2003. I am particularly encouraged by our healthy book-to-bill ratio during a normally slower quarter in terms of orders," said President and CEO Earl R. Lewis.

Cash generated from operations totaled $6.7 million for the first quarter of 2003. The Company has no outstanding debt and cash on hand of approximately $48 million.

Reiterates Revenue and Earnings Guidance for 2003

The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.

As previously announced, the Company continues to estimate revenue for 2003 in the range of $290 to $300 million, and net earnings of approximately $2.35 to $2.45 per diluted share, reflecting an estimated tax rate of 32%-34% versus 15% in 2002.

Forward-Looking Statements

The statements in this release by Earl R. Lewis and the statements in the Reiterates Revenue and Earnings Guidance for 2003 above are forward-looking statements. Such statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the following: changes in demand for the Company's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, the Company's continuing compliance with US export control laws and regulations, constraints on supplies of critical components, excess or shortage of production capacity, actual purchases under agreements, the continuing eligibility of the Company to act as a federal contractor, the amount and availability of appropriated government procurement funds and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

Conference Call

FLIR has scheduled a conference call at 11:00 am ET today. A simultaneous Web Cast of the conference call may be accessed online at or A replay will be available approximately one hour after the Web Cast at these same Internet addresses. For a telephone replay, dial 800/633-8284, reservation #21140600 beginning at approximately 1:00 PM ET.

About FLIR Systems

FLIR Systems, Inc. is a world leader in the design, manufacture and marketing of thermal imaging and stabilized camera systems for a wide variety of thermography and imaging applications including condition monitoring, research and development, manufacturing process control, airborne observation and broadcast, search and rescue, drug interdiction, surveillance and reconnaissance, navigation safety, border and maritime patrol, environmental monitoring and ground-based security. Visit the company's web site at

                          FLIR SYSTEMS, INC.


               (In thousands, except per share amounts)


                                                  Three Months Ended
                                                       March 31,

                                                    2003       2002

Revenue                                           $ 69,171   $ 58,098

Cost of goods sold                                  33,128     26,799

        Gross profit                                36,043     31,299

Operating expenses:

    Research and development                         7,598      7,089

    Selling, general and administrative             14,718     13,819

        Total operating expenses                    22,316     20,908

        Earnings from operations                    13,727     10,391

Interest expense                                       177        318

Other income, net                                     (107)      (124)

        Earnings before income taxes                13,657     10,197

Income tax provision                                 4,507      1,529

        Net earnings                               $ 9,150    $ 8,668

Net earnings per share:

    Basic                                           $ 0.53     $ 0.52

    Diluted                                         $ 0.51     $ 0.49

Weighted average shares outstanding:

    Basic                                           17,333     16,650

    Diluted                                         18,032     17,797

                          FLIR SYSTEMS, INC.

                   (In thousands, except par value)

                                                March 31,   Dec. 31,
                                                  2003        2002

Current assets:
    Cash and cash equivalents                     $48,087     $46,606
    Accounts receivable, net                       57,748      55,798
    Inventories                                    52,864      50,141
    Prepaid expenses and other current assets      15,522      12,673
    Deferred income taxes                           8,887       8,887
        Total current assets                      183,108     174,105

Property and equipment, net                        12,261      12,678
Deferred income taxes, net                         25,977      25,977
Intangible assets, net                             16,602      16,647
Other assets                                        5,918       4,415

                                                $ 243,866   $ 233,822


Current liabilities:
    Accounts payable                              $18,893     $16,465
    Deferred revenue                                4,481       4,770
    Accrued payroll and related liabilities         8,438      11,030
    Accrued product warranties                      3,449       3,432
    Advance payments from customers                10,637       8,030
    Other current liabilities                       6,516       6,341
    Accrued income taxes                            3,154       2,558
        Total current liabilities                  55,568      52,626

Pension and other long-term liabilities             9,386       8,869

Commitments and contingencies

Shareholders' equity:
    Preferred stock, $0.01 par value, 10,000
     shares authorized; no shares issued at
     March 31, 2003, and December 31, 2002             --          --
    Common stock, $0.01 par value, 30,000
     shares authorized, 17,306 and 17,300
     shares issued at March 31, 2003, and
     December 31, 2002, respectively                  173         173
    Additional paid-in capital                    214,834     217,879
    Accumulated deficit                           (34,155)    (43,305)
    Accumulated other comprehensive loss           (1,940)     (2,420)

        Total shareholders' equity                178,912     172,327

                                                $ 243,866   $ 233,822

FLIR Systems, Inc.
Steve Bailey / Jim Fitzhenry, 503/684-3731
Neil Berkman Associates